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HomeMy WebLinkAboutContract 37200 6 STATE OF TEXAS § z ` ` ` I �,> � l COUNTY OF TARRANT § TAX ABATEMENT AGREEMENT This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under the laws of the State of Texas and acting by and through Tom Higgins, its duly authorized Assistant City Manager, and EL HABR CORPORATION, INC., a Texas corporation doing business as MICHEL'S TIFFANY DOORS ("Company"), acting by and through Michel E. El-Habr, its duly authorized President. The City Council of the City of Fort Worth ("City Council") hereby finds and the parties hereby agree that the following statements are true and correct and constitute the basis upon which the parties have entered into this Agreement: A. On June 13, 2006, the City Council adopted Resolution No. 3363-06-2006, stating that the City elects to be eligible to participate in tax abatement, as authorized by and in accordance with the Property Redevelopment and Tax Abatement Act, codified in Chapter 312 of the Texas Tax Code, as amended (the "Code"). B. On November 27, 2007, the City Council adopted Resolution No. 3556-11-2007, approving a Relocation Incentives Policy (the "Relocation Incentives Policy") for qualifying businesses that are displaced and must relocate due to a Major Public Infrastructure Project, as that term is defined in the Relocation Incentives Policy. Tax abatement is one of the incentives available under the Relocation Incentives Policy. C. On February 28, 2006, the City Council adopted Resolution No. 3318-02-2006, finding that the State Highway 121 Project, as defined in Resolution No. 3318-02-2006, is a Major Public Infrastructure Project and that, therefore, businesses that are displaced and must relocate on account of the State Highway 121 Project are eligible for incentives pursuant to and in accordance with the Relocation Incentives Policy. D. Company currently operates its business at 4115 West Vickery Blvd. This property has been acquired by the City and Company has been notified by the City that its business operations there will be displaced by the State Highway 121 Project. Company desires to purchase the property at 3030 West Pafford St. (the "Land"), as more specifically described in Exhibit "A", attached hereto and hereby made a part of this Agreement for all purposes, and to relocate its business operations on the Land. The Land is located within that area of the City defined by the Relocation Incentives Policy as Area 2, which qualifies Company for tax abatement under the Relocation Incentives Policy. Ob -08 A08 : 15 IN ,� �t;�'9 Page 1 Tax Abatement Agreement between City of Fort Worth and Michel's Tiffany Doors E. On October 23, 2007, the City Council adopted Ordinance No. 17850-10-2007 (the "Ordinance") establishing Tax Abatement Reinvestment Zone No. 63, City of Fort Worth, Texas (the"Zone"). F. On June 28, 2007 Company submitted an application for tax abatement to the City concerning the contemplated use of the Land (the "Application"), attached hereto as Exhibit "B" and hereby made a part of this Agreement for all purposes. G. The contemplated use of the Land, the Required Improvements, as defined in Section 1, and the terms of this Agreement are consistent with encouraging development of the Zone and generating economic development and increased employment opportunities in the City, in accordance with the purposes for creation of the Zone. H. Written notice that the City intends to enter into this Agreement, along with a copy of this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing units in which the Land is located. NOW, THEREFORE, the City and Company, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. REQUIRED IMPROVEMENTS AND USE OF LAND BY COMPANY . Company shall construct on the Land a new building of approximately 18,000 square feet (the "Required Improvements") in order to relocate its business from 4115 West Vickery Blvd. to the Land. Once Company has completed the Required Improvements, Company shall notify the City in writing. Such written notice must occur on or before December 31, 2008 (the "Completion Deadline"). This written notice shall include a description of any new taxable tangible personal property that was not located in the City prior to the Effective Date of this Agreement and that has been placed on the Land since the Effective Date of this Agreement("New Personal Property"). Following receipt of such written notice, the City shall promptly verify whether the Required Improvements have been made and whether the New Personal Property is on the Land. Upon such verification, the City shall provide Company with written confirmation that the Required Improvements were completed (the date of such written confirmation being the "Completion Date") and a description of the New Personal Property that has been located on the Land. Following the Completion Date and all times thereafter during the Term of this Agreement, Company shall use the Land, the Required Improvements and the New Personal Property for the purpose of operating the business concerns of Michel's Tiffany Doors. The parties hereto agree that such use of the Land is consistent with the general purpose of encouraging redevelopment of the Zone during the Term of this Agreement. 2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS. In return for Company's construction of the Required Improvements and use of the Land in accordance with Section 1 of this Agreement, the City will grant to Company annual property tax Paget Tax Abatement Agreement between ?y;l U Uhl ?,75 � 1�( City of Fort Worth and Michel's Tiffany Doors p abatements on (i) the Land and any improvements thereon and (ii) any New Personal Property for a period of four (4) years, beginning in the first full year following the Completion Date (collectively, the "Abatement"). The amount of each annual Abatement granted under this Agreement shall be (i) fifty percent (50%) of the increase in value of the Land and any improvements thereon, including the Required Improvements, and (ii) fifty percent (50%) of the increase in value of the New Personal Property over their respective values as of January 1, 2008, which is the year in which the parties entered into this Agreement. 3. TERM. This Agreement shall take effect on the date as of which both the City and Company have executed this Agreement and, unless terminated earlier in accordance with its terms and conditions, shall expire on December 31 of the fourth (4th) full calendar year following the Completion Date (the"Term"). 4. RECORDS, AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS. 4.1. Inspection of Property. At any time during normal office hours throughout the Term and the year following the Term, and following reasonable notice to Company, the City shall have and Company shall provide access to the Land, any improvements thereon, including the Required Improvements and any New Personal Property, in order for the City to inspect the Land and evaluate the Required Improvements and the New Personal Property to ensure compliance with the terms and conditions of this Agreement. Company shall cooperate fully with the City during any such inspection and/or evaluation. Notwithstanding the foregoing, Company shall have the right to require that any representative of the City be escorted by Company's security personnel while on the Land. 4.2. Compliance Certification by Company. On or before March 1 of each year following the year in which the Completion Date occurred, Company shall submit a written certificate to the City as to whether Company is in compliance with all terms and conditions of this Agreement. 4.3. Audits. The City shall have the right to audit the financial and business records of Company that relate to Company's operations (collectively, the "Records") at any time during the Term and for one (1) year thereafter solely in order to verify that the Land is being used for the commercial purposes set forth in Section 1. Company shall make all Records available to the City on the Land or at another location in the City following reasonable advance notice by the City and shall otherwise cooperate fully with the City Page 3 Tax Abatement Agreement between ',iJl u '1V a ,,Ul City of Fort Worth and Micbel's Tiffany Doors f � �„ during any audit. This Section 4.3 shall survive the termination or expiration of this Agreement. 5. DEFAULT AND TERMINATION. 5.1. Failure to Complete Required Improvements. If Company fails to notify the City in writing on or before the Completion Deadline that the Required Improvements have been completed or if the City cannot verify that the Required Improvements were completed by the Completion Deadline, the City shall have the right to terminate this Agreement immediately upon provision of written notice to Company. 5.2. Other Default. An event of default shall occur under this Agreement if(i) Company fails to use the Land for the commercial purposes set forth in Section 1 for more than thirty (30) consecutive calendar days; (ii) ad valorem taxes on the Land, any improvements thereon or any personal property located thereon that are owed to the City by Company become delinquent and Company does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes; or(iii) Company breaches any other term or condition of this Agreement. If the City determines that an event of default has occurred pursuant to this Section 5.2, the City shall provide a written notice to Company that describes the nature of the default. Company shall have thirty (30) calendar days from the date of receipt of this written notice to fully cure or have cured the default. If Company reasonably believes that Company will require additional time to cure the default, Company shall promptly notify the City in writing, in which case (i) after advising the City Council in an open meeting of Company's efforts and intent to cure, Company shall have ninety (90) calendar days from the original date of receipt of the written notice to cure the default, or (ii) if Company reasonably believes that Company will require more than ninety (90) days to cure the default, after advising the City Council in an open meeting of Company's efforts and intent to cure, such additional time, if any, as may be offered by the City Council in its sole discretion. Notwithstanding anything to the contrary herein, if Company has been default under this Agreement for failure to use the Land for the commercial purposes set forth in Section 1 for more than thirty (30) consecutive calendar days on two (2) previous occasions during the Term of this Agreement, the City may terminate this Agreement upon provision of written notice to Company after the third such default without the obligation to provide Company the right to cure as provided above. In the event this Agreement is terminated pursuant to this Section 5.2, there shall be no recapture of any taxes abated prior to the effective date of termination. o rl Page 4 ` �vtJJ�� Tax Abatement Agreement between City of Fort worth and Michel's Tiffany Doors -,j 5.3. Termination at Will. Company may terminate this Agreement at any time by providing written notice of such intent to the City. In this event, (i) if the Term has commenced, the Term shall expire as of the effective date of the termination of this Agreement; (ii)there shall be no recapture of any taxes abated prior to the effective date of termination; and (iii) neither party shall have any further rights or obligations hereunder. 6. EFFECT OF SALE OF LAND, REQUIRED IMPROVEMENTS AND/OR PERSONAL PROPERTY. Company may assign all or any portion of its rights, benefits, duties, and obligations under this Agreement to Pafford Street Partners, LLC or another Affiliate of Company without the approval of the City Council. For purposes of this Agreement, "Affiliate" means any person or entity, incorporated or otherwise, under common control with, controlled by or controlling Company, with "control" meaning fifty percent (50%) or more of the ownership, as determined by either value or vote. Company may not otherwise assign this Agreement unless the City Council consents to the terms and conditions of the assignment and such assignee first executes a written agreement with the City that outlines the extent to which the assignee will assume the duties and obligations of Company hereunder. 7. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: with copies to: City of Fort Worth the City Attorney and Attn: City Manager Economic/Community Development 1000 Throckmorton Director at the same address Fort Worth, TX 76102 Company: Michel's Tiffany Doors 3030 West Pafford St. Fort Worth, TX 76110-5822 Page 575"U Tax Abatement Agreement between v, o City of Fort Worth and Michel's Tiffany Doors �_� ---• --- 8. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS; ALL GRANTS SUBJECT TO APPROPRIATION. This Agreement will be subject to all applicable federal, state and local laws, ordinances, rules and regulations, including, but not limited to, all provisions of the City's Charter and ordinances, as amended. Chapter 2264, Texas Government Code, relating to restrictions on the use of certain public subsidies (House Bill 1196, 80th Legislature) does not apply to this Agreement because the Application was submitted to the City prior to September 1, 2007. 9. GOVERNMENTAL POWERS. It is understood that by execution of this Agreement, the City does not waive or surrender any of it governmental powers or immunities. 10. NO WAIVER. The failure of either party to insist upon the performance of any term or provision of this Agreement or to exercise any right granted hereunder shall not constitute a waiver of that party's right to insist upon appropriate performance or to assert any such right on any future occasion. 11. VENUE AND JURISDICTION. If any action, whether or not real or asserted, at law or in equity, arises on the basis of any provision of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States Court for the Northern District of Texas—Fort Worth Division. This Agreement shall be construed in accordance with the laws of the State of Texas. 12. NO THIRD PARTY RIGHTS. The provisions of this Agreement are solely for the benefit of the City and Company, and are not intended to create any rights, contractual or otherwise, in any other person or entity. 13. FORCE MAJEURE. It is expressly understood and agreed that if the performance by either party of any obligation hereunder is delayed by reason of Force Majeure, the time period applicable to performance of such obligation shall be extended for a period of time equal to the period of the specific event of Force Majeure. Page 6 Tax Abatement Agreement between „ r City of Fort Worth and Michel's Tiffany Doors vUJvIfJ 14. INTERPRETATION. In the event of any dispute over the meaning or application of any provision of this Agreement, this Agreement shall be interpreted fairly and reasonably, and neither more strongly for or against either party, regardless of the actual drafter of this Agreement. In the event of any conflict between the City's zoning ordinances, or other City ordinances and regulations, and this Agreement, such ordinances or regulations shall control. 15. BONDHOLDER RIGHTS. The Required Improvements will not be financed by tax increment bonds. This Agreement is subject to the rights of holders of outstanding bonds of the City. 16. CONFLICTS OF INTEREST. Neither the Land nor any of the Required Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Plan or Zoning Commission or any member of the governing body of any taxing unit with jurisdiction in the Zone. 17. CAPTIONS. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 18. ENTIRETY OF AGREEMENT. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the parties hereto as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. This Agreement shall not be amended unless executed in writing by both parties and approved by the City Council. 19. COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be considered an original,but all of which shall constitute one instrument. Pagel Tax Abatement Agreement between City of Fort Worth and Michel's Tiffany Doors I (Uo IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the later date below: CITY OF FORT WORTH: APPROVED AS TO FORM AND LEGALITY: By: By: —r �e,-na44s elef 1-o4ir,39i6s Peter Vaky Assistant City Manager Assistant City Attorney Date: ATTEST: By: City Secretary EL HABR CORPORATION, INC., ATTEST: a Texas corporation doing business as MICHEL'S TIFFANY DOORS: By: // —) � By: Michel E. - abr President 41 Date: /;; D j Page 8 s Tax Abatement Agreement between City of Fort Worth and Michel's Tiffany Doors —•— STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Tom Higgins, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation organized under the laws of the State of Texas, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the CITY OF FORT WORTH, that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of Fort Worth and that he executed the same as the act of the CITY OF FORT WORTH for the purposes and consideration therein expressed and in the capacity therein stated. GIVE UNDER MY HAND AND SEAL OF OFFICE this 117kday of 2008. otary Public in and for the State of Texas ,$+ ANA L.BRISENO Notary's Printed Name * o ary Public,State of Texas 04. s v My Commission Expires March 07,2011 Tax Abatement Agreement between City of Fort Worth and Michel's Tiffany Doors STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Michel E. El- Habr, President of EL HABR CORPORATION, INC., a Texas corporation doing business as MICHELIS TIFFANY DOORS, known to me to be the person whose name is subscribed to the foregoing instrument, and a d to me that he executed the same for the purposes and consideration therein ressed, in the capacity therein stated and as the act and deed of EL HABR CORPO ION, INC. doi s as MICHEL'S TIFFANY DOORS. GAr MY ND AND AL OF OFFICE this ,> day of ,20 _ LLEAKE SKIPNotary public S' Carnm9(aallotary P is ' an or ,,,P„�� p0bruary 2 the State of Tex Notary's Printed Name Tax Abatement Agreement between City of Fort Worth and Michel's Tiffany Doors EXHIBITS "A"—Map and Legal Description of the Land "B"—Relocation Incentives Application 7,7 Tax Abatement Agreement between City of Fort Worth and Michel's Tiffany Doors EXHIBIT "A" DESCRIPTION OF THE LAND TRACT FEE SIMPLE BEING a tract of land situated in the State of Texas, the County of Tarrant and the City of Fort Worth, being part of the ELIJAH SUTHERLAND SURVEY, Abstract No. 1438, being all of a tract of land conveyed to Wachovia SBA Lending, Inc. by deed recorded in Instrument No. D206351347 of the Deed Records of Tarrant County, Texas and these premises being more particularly described as follows: BEGINNING at a railroad spike found in the north right-of-way line of West Pafford Street, marking the southwest corner of a tract of land conveyed to Isadore Bloomberg by deed recorded in Volume 7298, Page 611 of the Deed Records of Tarrant County, Texas and the southeast corner of said premises; THENCE with said north right-of-way line and the south line of said premises, South 89°50'00" West, 203.00 feet to a 1/z inch iron rod found marking the intersection of said north right-of-way line and the east line of the G.C. & S.F. Railroad right-of-way; THENCE with said east right-of-way line and the west line of said premises, North 41°22'00" East, 306.16 feet to a 1/z inch iron rod capped "5693" set marking the most westerly northwest corner of said Bloomberg tract and the north corner of said premises; THENCE with the west line of said Bloomberg tract and the east line of said premises; South 00°10'00" East, 229.18 feet to the POINT OF BEGINNING and containing 0.53 acres of land. TRACT 11 EASEMENT ESTATE BEING that certain easement for parking as reserved in that certain Warranty Deed, dated May 24, 1982, executed by David W. Clark to Isadore Bloomberg, recorded in Volume 7298, Page 611, Deed Records, Tarrant County, Texas, described as follows: BEGINNING at an iron pin found in the north line of West Pafford Street, said iron being 2528.7 feet from South 89 degrees 50 minutes West and 31.0 feet North 00 degrees 10 minutes West from the southeast corner of said Sutherland Survey, said iron pin also being 19.8 feet South 89 degrees 50 minutes West from the southeast corner of that certain tract conveyed to Louis H. Barnett as recorded in Volume 3382, Page 404, Deed Records, Tarrant County, Texas; THENCE South 89 degrees 50 minutes West, along the north line of West Pafford Street, 20 feet; SKI THENCE North 00 degrees 10 minutes West, 57 feet; THENCE North 89 degrees 50 minutes East, 20 feet; THENCE South 00 degrees 10 minutes East, 57 feet to the POINT OF BEGINNING. ^. n 1Ti}j I Gi 'l Oj1 v��ti v Exhibit "B" Application DD oeP. 10. 2007 4: 54PM No. 0606 P. 2 Relocation Incentives Application GENERAL INFORMATION 1. Applicant Information: Company Name boolz's Company Address A/1 / 5- L - V! K E R Y f ✓� City, State,Zip Code Fr. (,o o Q7-7ti -Tx Ile 1 e 7 Contact Person(include title/position): /4/e H 6' L--I,H-4 8 k-- Telephone Number CI'17, 0/3/ - d6 G-6 ext. Mobile Telephone Number J4 6 -- / 7-2 Fax Number R l q D o S� E-mail address: 2. New Location of Business: Address/Location: J O 3 o PQ r`Fo 3. Development requests that will be sought for the project(check all that apply): A. Replat: B. Rezoning: Current zoning: Requested zoning: C. Variances: If yes,please describe: D. Downtown Design Review Board: E. Landmark Commission: 4. Incentive(s)Requested by Area(please refer to the Relocation Incentives Policy and select the appropriate Area and incentives): Area 3: ❑ Expedited plan review ❑ Expedited Zoning Process ❑ 3-year 25%tax abatement Area 2: ❑ Expedited plan review ❑ Expedited Zoning Process year 50%tax abatement ❑ Release of certain liens, please specify Waiver of the following Development Department Fees,please select the fees: wilding permit 0 zoning ❑platting ❑ ordinance inspection ❑ encroachment ❑ expedited zoning ❑ fire, sprinkler, ✓alarm permit Area 1: ❑ Expedited plan review ❑ Expedited Zoning Process ❑ 8-year 75%tax abatement ❑ Release of certain liens, please specify Waiver of the following Development Department Fees,please select the fees: ❑ building permit. ❑ zoning CJ platting ❑ ordinance inspection ❑ encroachment ❑ expedited zoning U fire, sprnn Uer, alarm permit �,j E M 10 Page 2of4 Sep. 6. 2007 3; 28PM No. U5d4 r. ,BUSINESS IN.FomATION 5. Business Description A. Please provide a brief description of the business M,4AtuFF/4e7-0QE6t.. Of= GLfsS CL?00D 012—& B. Real Estate Development 1. New Development or Expansion(please circle one): Size ! 8� o o y sq. ft. Cost of Construction$ �! d o a 2. For mixed-use projects,please list square footage for each use 3. Site Development(parking, fencing, landscaping, etc): Type of work to be done Cost of Site Development$ O d C_ Personal Property& Inventory 1. New Personal Property: Cost of equipment,machinery, furnishing, etc: RFL oar-Tz" F+ /S 7-IN • Purchase or lease? 2. Inventory&Supplies: • Value of: Inventory$ Supplies $ • Percent of inventory eligible for Freeport exemption(inventory, exported from Texas within 175 days) % JJ Page 3 of 4 6. 2007 3: 28PM No, U5d4 r. 4 DISCLOSURES 6. Is any person or firm receiving any form of compensation,commission or other monetary benefit based on the level of incentive obtained by the applicant from the City of Fort Worth? If yes,please,explain and/or attach details. M 7. Please provide the following information as attachments: a) Attach a site plan of the project. b) Attach a legal description or surveyor's certified metes&bounds description. c) Attach a copy of the most recent property tax statement from the appropriate appraisal district for all parcels involved in the project, On behalf of the applicant,I certify the information contained in this application,including all attachments to be true and correct. I further certify that, on behalf of the applicant,I have read the current Relocation Incentives Policy and all other pertinent City of Fort Worth policies and I agree to comply with the guidelines and criteria stated therein, M770 Printed Name Title signature Date ,r Page 4 of 4 KDOM2a0LD Seep. 6. 2007 3: 28PM No, 0584 P. 5 Item 5 Suppernentary Equipment Or final Price Year Ac 'd Book Value Monthly Payment Note Balance Desk $1047.00 1995 $104,00 $0,00 New Desk $1,616.00 1998 $161.60 $0.00 Air conditioning $47 560.00 1993 $4,756.00 $0.00 Security system $3,740.00 1996 $374.00 $0.00 Hand Sanders 3 $1 690.00 1994 $169.00 $0.00 Hand Power Saws 2 $1 019.00 1999 $218,18 $0.00 Miter Saw& table $1 422.00 1995 $142.20 $0.00 Grinder $1,855.00 1995 $185.50 $0,00 Hand Planer $1,886.00 1995 $188.60 $0.00 Floor Planer $15 661.00 1993 $1 566.10 $0.00 Washer $4,000.00 1997 $400.00 $0.00 Spray aint system $230.00 1998 $23.00 $0.00 Compressor Husky Pro $942.00 2007 $942.00 $0.00 Compressor $8,364.00 1997 $836.40 $0.00 Com ressor 2 $3,967.00 1993 $396.70 $0.00 Paint&varnish Brushes $560.00 2005 $560.00 $0.00 Floor finisher $23,000.00 1995 $2,300,00 $0.00 Clams 120 $14,400.00 Various $10,000.00 $0,00 Table Saws 5 $16,170.00 2002 $11,256.00 $0.00 Band Saw $10,120.00 1993 $1,012.00 $0.00 Glass guide Rail $9,555.00 1995 $955.50 $0.00 D er $10,037.00 1997 $1,003.70 $0,00 Floor Shaper $11,603.00 1996 $1,160.30 $0.00 Hand Sevei Machine $15 000.00 1997 $1 500.00 $0.00 IG Machine $8 665.00 2002 $866.50 $0.00 Hand bevel Machine $27 500.00 1993 $2 750.00 $0.00 Floor Bevel Machine $27 793.00 2000 $2 779.00 $0.00 Polisher Baveloni $55 450.00 1995 $5.545.00 $0,00 Automatic Beveler B52 $72,000.00 2002 $7 200.00 $0.00 Hand Bevel Machine $27 500.00 1994 $2,750.00 $0.00 Came..Assembly tables $2 750.00 1989 $0.00 $0.00 Computer $1,260.00 2004 $530.00 $0.00 Computer Desk to $664.00 2005 $254.00 $0.00 General Hand tools $3,200,00 Various $1,700.00 $0.00 Small compressor $878.00 1989 $0,00 $0.00 Heaters Kerosene $2,460.00 2005 $2 460.00 $0.00 Showroom doors $72,000.00 2004 $51 000.00 $1,146.04 $25,857,63 Chevy VAN $25 600.00 2003 $12 300.00 $1,163.92 $28,801.12 o ata 7ocoma $23 600,00 1998 $2 360.00 $1,093.95 $25,857.63 Truck $46,000.00 1993 $0.00 $0,00 Hand Polisher 4 $14 560.00 2000 $7,640.00 $0.00 Calculators $1,440.00 2004 $1,160.00 $0.00 Klin $7,000.00 1993 $700.00 $0,00 Copiers $1,245.00 2001 $124.50 $0.00 Lighting units $2,576,00 2001 $257,60 $0.00 ens pencil & ect... $1,355.00 Various $1 355.00 $0.00 Cleaner Automatic $69,551.00 1999 $13,981.00 $707.00 $31 975.00 .J" $700,491.00 1$157,823.38j $112 491.38 ffC I y � ✓Z 11 ..( o�9 '17r I ., J C ti f O B 2 15 wilt v N g� 6i� 5. ��O• :nit>61�o a�E.1 gg�� �E E�'E: �� ti`�:,u� ec�iero o••i' _B® �bgB'�'� �58�5� n n E S q Cal rnfA m CD coLLI g e l ��8i 5. 'J ;F• �Q E {����ga s &� pA AD J ro v p o g g y� _a -pm @Y F�65 Ri .GEE q IVY g a sE� °5 N in aNFp � � �dQs 3s s`0g A £gg d 6 a 0o gig~ a � = � =�a11 �i, fag , cj U a� g a b 71 7o €° nb 8l'6ZZ 13,•OOA6.02S .. ob aes s':eg -- �' a o }4' • ° • b N .mil �� o �• °� ° �� �. —40 W .5<o~ 2A aa ° yzp Lae �£+ •.°v. R ,s 8J a -p s§4o� O ys $ N a ti �3m g a .L•.t M Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 11/6/2007 DATE: Tuesday, November 06, 2007 LOG NAME: 17MCLEDRXAGR REFERENCE NO.: C-22516 SUBJECT: Authorize Execution of Tax Abatement Agreement with El Habr Corporation, Inc., d/b/a Michel's Tiffany Doors, for Property at 3030 West Pafford Street RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to execute the attached Tax Abatement Agreement with El Habr Corporation, Inc., d/b/a Michel's Tiffany Doors; and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement are true and correct. DISCUSSION: The real property subject to abatement in the attached Tax Abatement Agreement with El Habr Corporation, Inc., d/b/a Michel's Tiffany Doors (Company) is located at 3030 Pafford Street in south Fort Worth. The City Council designated this property as Tax Abatement Reinvestment Zone Number 63, City of Fort Worth, Texas. The Company currently operates at 4115 West Vickery Boulevard and is being displaced due to the Southwest Parkway Project and applied for incentives under the City's Relocation Incentives Policy approved by M&C-G 15045 (the Policy). Under the Policy, businesses that are displaced and must relocate due to a Major Public Infrastructure Project would be eligible for incentives as outlined in the policy guidelines. The level of incentive is dictated by locating in one of the three target areas outlined in the Policy. The City Council has designated the Southwest Parkway Project as a Major Public Infrastructure Project (Resolution No. 3318-02-2006). As a result of the displacement, the Company will relocate to 3030 Pafford Street and occupy a 18,000 square foot facility. The proposed improvements are estimated to cost $546,000. Under the Tax Abatement Agreement and in accordance with the Policy, the Company will receive a four- year tax abatement on real and personal property improvements with a maximum abatement of 50 percent annually. The projected value of the tax abatement over the four-year period is approximately $2,000. The term of the abatement will begin on January 1 of the year following the calendar year in which the required improvements are completed and unless sooner terminated, shall end on December 31 of the fourth year following the year in which the required improvements were completed. This reinvestment zone is located in COUNCIL DISTRICT 9. http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 6/11/2008 Page 2 of 2 FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the terms of this agreement will provide incentives to El Habr Corporation, Inc., d/b/a Michel's Tiffany Doors with an estimated net present value less than the additional revenue received from incremental taxes paid to the City. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Dale Fisseler (6140) Originating Department Head: Tom Higgins (6192) Additional Information Contact: Mark Folden (8634) http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 6/11/2008